Honda to cease production in United Kingdom

Car manufacturer Honda will cease production in the United Kingdom (UK) in 2022. However, the Japanese company claims that the proposed closure of its Swindon plant has nothing to do with Brexit, according to a report by the British channel Sky News.

The Swindon plant is Honda’s only factory in Europe. It employs 3,500 people, but thousands more jobs are at stake in the supply chain. The existing production activities will probably be transferred to Japan.

Last year, 160,000 Honda Civics rolled off the production line in Swindon, 90% of which were sold in mainland Europe. The factory accounts for about 10% of the 1.5 million cars produced in the UK annually.

Uncertainty about Brexit

Honda’s announcement of its plans to leave the UK comes after a series of warnings from the British private sector that the continuing uncertainty over Brexit is severely damaging business. Earlier this month, Nissan also cancelled the production of new SUVs in the UK.

The UK’s departure from the EU on 29 March seems to be heading for a ‘no deal’ Brexit. Companies fear that there will be chaos, because exporting and importing without proper agreements is not only much more difficult but also more expensive – which could be disastrous for the car industry.